A Term paper on strategic management for netweb corporation

• Main Author: Sta. Maria, Erwin T.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4465
• Institution: De La Salle University

This strategic management plan for Netweb Corporation was formulated based on threats and opportunities facing the multi-billion information processing industry Netwbs capabilities (or lack thereof) to face these threats and opportunities, the values and guiding principles of the owner/management, and the expectations of society. Analysis of the task environment revealed that there is an intense rivalry among the industry competitors, there are no near substitute threats for the products in this industry, the threat of switching to substitutes is very low, the present power of the buyer is not yet as strong as they would desire to be, the suppliers have a weak position in the present environment, and entry barriers in this industry are high. The relevant macro-environment as the source for potential changes, and how these changes affect the competitive forces in the industry, and how these changes may present threats or opportunities t to the industry as a whole was used. The threats in the industry are : political instability younger age structure inequalities of wealth distribution and poverty cautious spending, value for money, changes in consumption patterns brought about by price sensitivity and buyer and seller connectivity through information technology low recorded and forecasted inflation rate high volatility of the peso advances and opportunities presented by ICT, E-commerce and the internet, wireless broadband/wifi, electronic banking and telecommunications services legislative tax measures to improve revenue generation trade liberalization increasing migration of Filipino workers outside the country and trade liberalization increasing migration of Filipino workers outside the country and development of the physical, digital/ communications and intellectual infrastructure. Opportunities identified are as follows: Population growth towards highly populated and highly density areas Declining trend of interest rates Companies turning to Information Technology solutions to immediately solve business problems The Philippines establishes itself as a hub for call centers with expectations of increasing this business to quadruple in 2010 and the Philippines is one of the fastest growing technology markets worldwide. The study also identified the specialization and price policy as two important strategies employed by Netweb, setting ground in order to identify the companys direct competitors. The external analysis ends with a brief description of societys expectations, as to how the information processing industry is expected to continuously improve its products offering faster service to its end users. Analysis of the internal aspects of the Netweb, with its financial condition and its activities that has value to its customers as presented in Value Chain Analysis resulted in identifying the companys strengths and weaknesses. The following strengths were discovered: (a) established strong relationship with businessmen (b) recognized as a system developer for hospital computerization needs in the CALABARZON area IBM Phils. and Microsoft, Phils. (e) improving liquidity condition (f) strategic location of the company and (g) superior management information system in place. The weakness include : (a) high interest expense (b) undermanned technical group (c) no Quality Program in Place and (d) inadequate employee development program. The internal analysis ends with a brief background of the key implementers values. The vision of Netweb Corporation is to be the lending company in the information processing industry in South East Asia and Pacific regions, and eventually the world. To achieve its objective, two strategies were crafted: (1)NETWEB CORPORATION will expand geographic coverage by acquiring international outstanding jobs in its specialized line of computerizing various hospitals information systems requirements (specialization dimension) and (2)NETWEB CORPORATION will launch a new software product for hospitals with a new name and representing an improved and more superior software than its existing one, as developed by the companys software engineers (technological leadership). The strategies end with functional strategies, for the related activities of marketing, operations, finance, human resources, and management information systems. The implementation portion describes the current capabilities of Netweb that would enable it to implement the corporate strategies. These capabilities are presented in terms of the McKinseys 7S Model of strategy, structure, system, staff, skill, style and shared values, each providing a basis for capability and incapability. The Eight Strategy Implementing Tasks (8SIT) will provide the basis for developing whatever capabilities are needed in order to overcome these aforementioned shortcomings, and to be able to implement the corporate strategies. The Financial Projections portion is the future financial condition of the company, based on forecast assumptions that were derived from the corporate objectives that the company wishes to attain. An average of about 15% net profit margin was derived to meet initial corporate objectives. This paper was written as a strategic plan, a proposal for meeting a future full of uncertainty and risk. It is by no means a guarantee for success, or a recipe for profitability. But it should be a reasonable view of what is to come, and an honest appraisal of what is needed to face that future.